NBU worsens Ukraine's GDP growth forecast for 2016

14:47, 28.01.2016 1 min read

The National Bank of Ukraine (NBU) has revised downwards its forecast for Ukraine's GDP growth for 2016 from 2.4% to 1.1%, leaving inflation at 12%, the central bank said in a press release, referring to the decision of the board for the monetary policy made at a meeting on Thursday.

"The slower restoration of the economy compared to the previous year is linked to the lower than it was expected prices on the global commodity markets, worsening of prospects for growth of the global economy, new restrictions in trade with Russia and transit across Russia," the NBU said.

The central bank said that among other factors pushing up the inflation slowing trend is the further reduction of inflation expectations, the revoking of the additional imports duty and low global prices of energy and food, the board said.

The NBU revised upwards Ukraine's GDP fall in 2015 from 11.5% to 10.6% and the bank anticipates that GDP in 2017 will grow by 3% with inflation of 8%.

As reported, the 2016 Ukrainian budget is based on the forecast for GDP growth by 2% with inflation of 12%.